There is known a hybrid vehicle provided with an engine, an electric motor, and a clutch operable to selectively connect the engine to a power transmitting path from the electric motor to the vehicle drive wheels. Patent Documents 1 and 2 disclose examples of such a hybrid vehicle. During operation of the hybrid vehicle disclosed in Patent Documents 1 or 2, the clutch is placed in a slipping state as a drive mode of the hybrid vehicle is switched between an electric motor drive mode in which the hybrid vehicle is driven with the electric motor used as a drive power source, and an engine drive mode in which the hybrid vehicle is driven with the engine or the engine and the electric motor used as the drive power source. In the slipping state, the temperature of the clutch increases. In view of this increase in temperature, the clutch is controlled to be brought into an engaged state or a released state when the temperature of the clutch reaches a value close to its overheat upper limit. Thus, the condition under which the clutch is permitted to be placed in its slipping state is restricted to reduce an increase in the temperature of the clutch.